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Good Wednesday morning,
Buyers continued with their operations yesterday and our upper target was hit @ 5105. This is quite impressive and shows us that investors are willing to accept and pay higher prices after the recent pullback. The big question now is....will this continue or are traders looking for the next leg higher to sell into this strength?!?!
Overnight inventory is almost 100% net long however we are well off overnight highs. In the profile pic below, you can see the critical levels to pay attention to today. First is the poor high...this happens when buyers just run out of energy and can't take the markets higher. No big surprise after the impressive move during the day yesterday's rally. Second is the overnight low and the point of control @ 5106. If price starts to go below there, then look for value area low and the start of the single prints @ 5094-5092. If sellers continue and take price back below 5092, then look for lower targets. Anything between 5112 and 5106 is a stalemate!
VPOC Update: We added another new VPOC below at 5047.50! We still have 2 above and now back to 17 below. This shows us buyers are willing to spend money and take stocks higher as they believe the recent pullback was a buying opportunity. Question remains as stated above....will the move continue or will they come back in and sell around 5150?!!?
By the way, TSLA and BA popped after earnings last night and AAPL came into that key support level we mentioned a few weeks back. It took a while but the October 2023 lows of $165 have been hit. This could be a RORO trade....right or right out!
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 5130 - 5140 then 5150
Key Level: 5106 Overnight Low & POC
downside target is: 5075 - 5070
/NQ upside target is: 17,760 - 17,790
Key Level: 17,652 Overnight Low and Value Area High
downside target is : 17,490 - 17,470
/RTY upside target is: 2030- 2040
downside target is: 1995 - 1990
Economic Data: Light today!
Durable Goods @ 8:30 AM EST
Crude Inventories @ 10:30 AM EST
More Color.......
/ES - Key Demand from yesterday at $5075 with Supply not until $5125
1. Sell off at the open where sellers are trapped above $5075 playing long
targeting $5100 then $5110
SPY - Key Demand at $499-500 then below at $504 506
(Supply at $509 -510)
1. As long as the price is above $504 I want to play long after breakouts and
pullbacks at demand zone first ($504 targeting $506 and the $507
2. A below down below $499 I will look to play short off a break and retest
target $496 then $492
SPX - Key Demand at $5028 and at $4970 then Supply above at $5082
1. As long as price holds above $5000 I want to be playing long off dips
2. A break below $5000 leaves room to downside targeting $4968
/NQ - Key Demand at $17500 -46 with Supply above at $17770
QQQ - Key Demand at $423 - 424 with Supply at $430-428
1. Break down above $422 looking to play long targeting $426 then $427
2. Sell off below $422 and hold off a break and retest looking to play short
targeting $420.88 then $419
AMD Key Demand at $151 then below that at $149 and $145 LOD 30min
1. Sell off above $148 looking to play long targeting $152 then $155
TSLA Key Demand at $152 then at $143-145 with Supply at $177-179
1. Pull back off key demand only looking to play long targeting HOD
MU - Key supply at $116-118 with Demand at $110-112 then below that at
$105-106
1. Sellers trapped at the open above $110 looking to play long off a break and retest for key demand targeting $113 then 115.55
2. I would only look to play short if price can break and hold under $109 or if buyers are trapped at the open below $118 targeting $115
As ALWAYS, have your stops in place!!!
Have a great trading day!
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